U.S. Transformers Industry Research Report 2025-2030 | Power Infrastructure Modernization Boosts Demand and Growth - ResearchAndMarkets.com

The "U.S. Transformers Market Research Report 2025-2030" report has been added to ResearchAndMarkets.com's offering.

The U.S. transformer market is expected to grow at a CAGR of 7.06% from 2024 to 2030.

The U.S. transformer market is moderately consolidated, led by global players like GE Vernova, Eaton, and Siemens Energy, alongside smaller specialty manufacturers.

Rising demand from aging infrastructure, data centers, AI, semiconductors, and clean energy projects is straining existing capacity. Tariffs on steel and aluminum have raised production costs, while domestic suppliers meet only a fraction of demand, leading to long lead times of 2-4 years. With many transformers over 33 years old, urgent replacements and grid expansions are needed to support electrification and EV growth. These combined pressures are driving major investments in domestic manufacturing to modernize the grid and strengthen energy resilience.

The U.S. West region, including California, Washington, Oregon, and Nevada, leads the distribution transformer market, driven by rapid urbanization, aggressive clean energy goals, and grid modernization initiatives. California's focus on electric vehicles, solar, and wind projects generates strong demand for advanced transformers to manage variable power flows and maintain grid stability. Key projects like the Vaca-Dixon Substation Upgrade, Washington's Clean Energy Fund, Oregon's Grid Modernization, and Nevada's Copper Mountain Solar Expansion highlight the region's leadership.

Moreover, the West's fast-growing renewable energy capacity and emphasis on integrating distributed energy resources continue to fuel demand for high-performance, future-ready transformers. The region's distribution transformer market is expected to grow at a CAGR of 8.50% from 2024 to 2030, largely due to stringent state-level policies promoting clean energy and aggressive investments in EV infrastructure and smart grid technologies.

US TRANSFORMER MARKET TRENDS & DRIVERS

Growth Driven by Rapid Digitalization Among Transformers

The U.S. transformer market is rapidly evolving with digital technologies to meet growing demand for efficient, reliable, and future-ready grid systems. Companies like VIE Technologies and RESA Power are adopting AI-based sensors and real-time monitoring, while Reinhausen Manufacturing is expanding smart transformer production.

Utilities are upgrading millions of aging units with IoT sensors for predictive maintenance, backed by the DOE's USD 18 million FITT program supporting advanced transformer projects. Rising renewable energy installations, large-scale battery storage, and expanding EV charging networks are further driving demand for high-capacity, smart transformers, accelerating the shift toward digital, eco-friendly grid modernization solutions.

Modernization of Power Infrastructure Programs

The modernization of the U.S. power grid is transforming transformer demand, fueled by the need for higher efficiency, energy storage integration, and distributed energy resource (DER) support. In 2024, California ISO ordered the replacement of 1,200+ transformers at storage sites with smart models for rapid charge-discharge management, while ERCOT invested USD 35 million in smart transformers for large battery projects.

Utilities like ComEd committed over USD 75 million to upgrade aging units with low-loss amorphous core transformers, enhancing grid efficiency. Meanwhile, data center expansions in Northern Virginia and beyond drove over USD 100 million in transformer upgrades to support AI and cloud computing growth, accelerating nationwide demand for advanced smart transformer technologies. Such factors are projected to support the U.S. transformer market growth.

Significant Investments in Transformer Production

• Prolec GE Expands Manufacturing in North Carolina in 2025, Investment: USD 140 million. Prolec GE, a joint venture between Xignux and GE Vernova, is constructing a 144,000-square-foot facility to double its medium power transformer production capacity. This expansion is expected to create over 330 jobs and is supported by state and federal incentives.
• In 2025, VanTran and MGM Transformers opened a new 430,000-square-foot facility in Waco, Texas, with a USD 1 billion investment to support data centers, renewable energy projects, and industrial reshoring, contributing to regional infrastructure development.
• In 2025, Eaton is establishing a third U.S. manufacturing facility for three-phase transformers in Jonesville, South Carolina, aiming to address transformer shortages, with production expected to begin in 2027. In 2025, Pennsylvania Transformer Technology is investing USD 102.5 million to expand operations in Raeford, North Carolina, adding 217 new jobs and enhancing its manufacturing footprint to meet increasing demand.

KEY QUESTIONS ANSWERED:

• How big is the U.S. transformer market?
• What is the growth rate of the U.S. transformer market?
• Who are the key players in the U.S. transformer market?
• Which region dominates the U.S. transformer market share?
• What are the significant trends in the U.S. transformer market?

Key Attributes:

Key Company Profiles

• General Electric Vernova
• Siemens Energy
• HD Hyundai Electric Co. Ltd.
• Eaton Corporation
• Schneider Electric
• Quanta Services Inc.
• ABB Inc.
• Hitachi Energy
• Emerson Electric Co.
• Mitsubishi Electric Corporation
• Toshiba Energy Systems & Solutions Corp.
• Niagara Power Transformer
• Triad Magnetics
• Prolec Energy
• Endicott Coil Company

Other Prominent Company Profiles

• Pico Electronics Inc.
• Fuji Electric Co. Ltd.
• Nissin Electric Co. Ltd.
• Hyosung Heavy Industries Co. Ltd.
• CORE Industrial Partners
• Elsco Transformers
• Kirloskar Electric Company Ltd.
• Rockwell Automation Inc.
• Hammond Power Solutions
• Micron Industries Corp.
• Hubbell Incorporated
• Atlas Transformer
• Meta Power Solutions
• Dongan Electric Manufacturing Co., Inc.
• Renco Electronics
• Virginia Transformer Corporation
• SPX Transformer Solutions
• JST Power Equipment
• Maddox Industrial Transformer, LLC
• Electric Power Inc
• UTB TRANSFORMERS
• KONCAR D.D.

SEGMENTATION & FORECAST

Segmentation by Insulation Type

• Liquid Immersed
• Dry-Type
• Others

Segmentation by Liquid Immersed

• Distribution Transformer
• Power Transformer
• Others

Segmentation by Distribution Transformer Voltage Type

• Up To 34.5 KV
• Up To 69 KV AND APPROX. 10 MVA

Segmentation by Power Transformer Voltage Type

• Medium Power (10-100 MVA)
• Large Power (>100 MVA)

Segmentation by Distribution Transformer by Phase Type

• Three-phase
• Single-phase

Segmentation by Single-phase Mount Type

• Single-phase pole
• Single-phase pad

Segmentation by Three-Phase Mount Type

• Three-phase pole
• Three-phase pad
• Others

Segmentation by Application (up to 69KV or 10 MVA)

• Substation
• Solar
• Wind
• Datacenter
• BESS
• Others

Segmentation by End User

• Industrial
• Residential
• Commercial
• Others

Segmentation by Geography

• The U.S.
• West
• South
• Northeast
• Midwest

For more information about this report visit https://www.researchandmarkets.com/r/n6xy4m

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250827976623/en/